SET6B HUMAN RESOURCE MANAGEMENT. Unit : Unit I - V

Transcription

1 SET6B HUMAN RESOURCE MANAGEMENT Unit : Unit I - V

2 UNIT I: Syllabus Introduction to HRM Definition and Scope of HRM Functions of HRM Role of HRM in the organisation Changing trends and Challenges in HRM SET6B Human Resource Management 2

3 INTRODUCTION TO HRM Human resource management (HRM) is the governance of an organization s employees. HRM is sometimes referred to simply as human resources (HR). A company s human resources department is responsible for creating, implementing and/or overseeing policies governing employee behavior and the behavior of the company toward its employees. SET6B Human Resource Management 3

4 DEFINITION OF HRM HRM is a strategic approach to managing employment relations which emphasizes that leveraging people s capabilities is critical to achieving competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices. (Bratton and Gold,2007). HRM is a managerial perspective which argues the need to establish an integrated series of personnel policies to support organizational strategy. Buchanan and Huczynski, 2004). SET6B Human Resource Management 4

5 SCOPE OF HRM SET6B Human Resource Management 5

6 SEMANTIC OF HRM A. HRM Human resource Management B. PM Personnel Management C. IRM Industrial Relations Management D. TM Talent Management Sub Code - Sub Name 6

7 OBJECTIVES OF HRM Objectives of HRM are four folded Societal objectives Organizational objectives Functional objectives Personal objectives Sub Code - Sub Name 7

8 FACTORS INFLUENCING HR TEAM STRUCTURE Sub Code - Sub Name 8

9 OUTSOURCING Outsourcing (also called subcontracting) is the process by which employers transfer routine or peripheral work to another organization that specializes in that work and can perform it more efficiently. SET6B Human Resource Management 9

10 OUTSOURCING ACTIVITIES Employee Hiring Training and Development Payroll Preparation Benefits administration Statutory Records Maintenance SET6B Human Resource Management 10

11 PRINCIPLES oindividual development oscientific selection ofree flow of communication oparticipation ofair remuneration oincentive odignity of labour olabour management co-operation oteam spirit ocontribution to national posperity SET6B Human Resource Management 11

12 ULRICH S HR MODEL SET6B Human Resource Management 12

13 ROLES OF HR GENERALIST- ( Director, Manager, Bussiness Partner) Specialist- (Head of TM,Reward,l&D) Strategist Business partners Change agents 1.Strategic role 2.Bussiness partner role 3.Innovation role 4.The change agent role SET6B Human Resource Management 13

14 CHANGING TRENDS AND CHALLENGES IN HRM Outsourcing Bpo and Call Centres Managing Diversity Feminizing Workforce Knowledge Management Attitude towards unions Globalization HRM in high performing organizations Changed workforce and employee expectations. SET6B Human Resource Management 14

15 UNIT II: Syllabus Recruiting and Selection Human Resource Planning (short and long term) Job analysis, description and specification Recruitment and Selection Sources of recruiting The different processes in recruiting Advantages and disadvantages of different methods of recruitment Interviews and methods of interviews SET6B Human Resource Management 15

16 RECRUITMENT AND SELECTION Recruiting is the process of developing a pool of qualified applicants who are interested in working for the organization and from which the organization might reasonably select the best individual or individuals to hire for employment. SET6B Human Resource Management 16

17 SELECTION Selection, as is defined by Mondy et al. is: the process of choosing from a group of applicants the individual best suited for a particular position (Mondy et al., 1996: 180) SET6B Human Resource Management 17

18 MEANING OF HUMAN RESOURCE PLANNING In simple terms, Human Resource Planning should be viewed, as that part of HRM where by a determination is made in terms of organization s human resource needs for it to be able to meet its goals. Human Resource planning is defined as, The process of ensuring that the human resource requirements of an organization are identified and plans are made for satisfying those requirements SET6B Human Resource Management 18

19 HRP: A Qualitative And Quantitative Process HRP addresses an organization s human resource needs both in quantitative terms i.e. how many people and qualitative terms i.e. what kind of people and with what skills, knowledge, and aptitudes (SKAs) The business philosophy behind HRP An organization that engages in HRP is in essence displaying its belief in that the human resource is the most important and strategic resource. (HRP is therefore a key element of strategic HRM). In other words such an organization believes that only through a proper HR base can its survival and growth be guaranteed The context of HRP HRP occurs within the framework of an organization s strategic planning process. Strategic planning is, the determination of overall organizational goals and objectives and how they will be achieved SET6B Human Resource Management 19

20 HUMAN RESOURSE PLANNING AS A STRATERGIC PROCESS HRP occurs within the framework of an organization s business goals. In other words through HRP (i.e. the process of determining future HR needs), an organization can set what goals it wants to achieve and how it will achieve them (of course together with other functional plans). HRP is therefore a key way through which organizational goals can be achieved. It is important to note that organizational and corporate frameworks determine or set the agenda for HRP. SET6B Human Resource Management 20

21 JOB ANALYSIS It is the process of objectively determining the specific duties, responsibilities and working conditions associated with a specific job, as well as the personal skills and qualifications required to perform that job satisfactorily. Job analysis assesses what employees are doing. So it is the process of getting information about job. It investigates exactly what the worker does in a particular job, how he does it, why he does it, how much skills is required to do it and physical demands, environmental conditions associated with this specific job. SET6B Human Resource Management 21

22 JOB ANALYSIS AS A PROCESS SET6B Human Resource Management 22

23 JOB DESCRIPTION Job description is a written statement of the duties, responsibilities and organizational relationships that are required of the employee in a given job. The components of job description are: 1. Date, revised date. 2. Job title 3. Department 4. Division 5. Code number 6. Job position required 7. Job summary 8. Organizational relationship: position accountable & position accountable to 9. Job duties and responsibilities. SET6B Human Resource Management 23

24 JOB SPECIFICATION Job specification is derived from job analysis and job description. It is the personal qualifications, skills, physical and mental demands required for effective job performance. It answers the following questions: What human traits and experience are necessary to do this job? What kind of person to recruit for and qualifications needed? What qualities that person should be tested for? SET6B Human Resource Management 24

25 SOURCES OF RECRUITING SET6B Human Resource Management 25

26 THE DIFFERENT PROCESSES IN RECRUITING SET6B Human Resource Management 27

27 ADVANTAGES AND DISADVANTAGES OF DIFFERENT METHODS OF RECRUITMENT SET6B Human Resource Management 28

28 INTERVIEWS Interviewing people costs money. As a result, after candidates are selected, good use of time is critical to making sure the interview process allows for selection of the right candidate. In an unstructured interview, questions are changed to match the specific applicant; for example, questions about the candidate s background in relation to their résumé might be used. In a structured interview, there is a set of standardized questions based on the job analysis, not on individual candidates resume. While a structured interview might seem the best option to find out about a particular candidate, the bigger concern is that the interview revolves around the specific job for which the candidate is interviewing. SET6B Human Resource Management 29

29 TYPES OF INTERVIEWS Informal Interview: This is may take place anywhere. The employer or a manager in the personnal department, may ask a few questions, like name, place of birth, previous experience, etc. It is not planned and is used widely when the labour market is tight and you need workers very badly. Formal Interview: This held in a more formal atmosphere in the employment office by the employment officer with the help of wellstructured questions. The time and place of the interview are stipulated by the employment office. SET6B Human Resource Management 30

30 UNIT III: Syllabus Training and Development Need for training Training Need analysis Designing training courses Training methodology Training effectiveness Training at Different Levels Managing star performers and underperformers Grievances and Redressal Multiskilling HR process reengineering SET6B Human Resource Management 33

31 TRAINING Training is the process for providing required skills to the employee for doing the job effectively, skillfully and qualitatively. Training of employees is not continuous, but it is periodical and given in specified time. Generally training will be given by an expert or professional in related field or job. Training is required at every stage of work and for every person at work. Training is a process of learning a sequence of programmed behavior. It is the application of knowledge & gives people an awareness of rules & procedures to guide their behavior. SET6B Human Resource Management 34

32 TRAINING AND DEVELOPMENT TRAINING AND DEVELOPMENT is a subsystem of an organization and core function of human resource management. It ensures continuous skill development of employees working in organisation and habituates process of learning for developing knowledge to work. Training and Development is the foundation for obtaining quality output from employees. SET6B Human Resource Management 35

33 TRAINING AND DEVELOPMENT..continued Training and Development is a structured program with different methods designed by professionals in particular job. It has become most common and continuous task in any organisation for updating skills and knowledge of employees in accordance with changing environment. SET6B Human Resource Management 36

34 NEED FOR TRAINING Training is crucial for organizational development and success Training is given on four basic grounds: 1. New candidates who join an organization are given training. This training familiarize them with the organizational mission, vision, rules and regulations and the working conditions. 2. The existing employees are trained to refresh and enhance their knowledge. 3. If any updations and amendments take place in technology, training is given to cope up with those changes. 4. When promotion and career growth becomes important. Training is given so that employees are prepared to share the responsibilities of the higher level job. SET6B Human Resource Management 37

35 TRAINING NEED ANALYSIS SET6B Human Resource Management 38

36 THE ADDIE APPROACH SET6B Human Resource Management 39

37 DESIGNING TRAINING COURSES The seven steps are: 1. Identification of training need and analysis. 2. Setting up of training and development objectives. 3. Selection and designing of programmes. 4. Selection and developing training methods and techniques. 5. Implementation of training and development programmes. 6. Evaluation of training and development programmes. 7. Feed back leading to further identification of training needs. SET6B Human Resource Management 40

38 Learning styles An effective trainer tries to develop training to meet the three different learning styles: Visual learner. A visual learner usually has a clear picture of an experience. A visual learner often says things such as I can see what you are saying or This looks good. A visual learner is best reached using graphics, pictures, and figures. Auditory learner. An auditory learner learns by sound. An auditory learner might say, If I hear you right or What do you hear about this situation? The auditory learner will learn by listening to a lecture or to someone explaining how to do something. SET6B Human Resource Management 41

39 Learning styles Kinesthetic learner. A kinesthetic learner learns by developing feelings toward an experience. These types of learners tend to learn by doing rather than listening or seeing someone else do it. This type of learner will often say things such as This feels right. SET6B Human Resource Management 42

40 METHODS OF TRAINING SET6B Human Resource Management 43

41 LEVELS OF TRAINING SET6B Human Resource Management 44

42 HR PROCESS REENGINEERING There are at least two approaches to business process optimization and reengineering: 1. Revolutionary, when all the changes are provided in a short period of time and have quite significant differences with a previous system. 2. Evolutionary, a combination of reengineering with methods of business process optimization. SET6B Human Resource Management 45

43 UNIT IV: Syllabus Performance Assessment Approach to performance appraisal Stages in Performance evaluation Performance Evaluation Systems Different Methods MBO 360* evaluation Balanced score Card etc Assessment Centres Link of performance evaluation to rewards PE and Development SET6B Human Resource Management 46

44 PERFORMANCE ASSESSMENT Assessment should be part of the learning process, not just a way to keep score. Performance assessments enable learners to show what they know and can do, rather than what they ve memorized. Performance assessment is an assessment activity or set of activities that requires examinees to generate products or performances that provide direct or indirect evidence of the examinee s knowledge, skills, and abilities (KSAs) in an academic content domain or professional discipline. Performance assessments support both formative and summative uses, and guide instruction and encourage educators to increase expectations for student learning. SET6B Human Resource Management 47

45 METHODS OF PERFORMANCE APPRAISAL SET6B Human Resource Management 48

46 PERFORMANCE EVALUATION Performance evaluations, which provide employers with an opportunity to assess their employees contributions to the organization, are essential to developing a powerful work team. The benefits of performance evaluations outweigh these challenges, though. When done as part of a performance evaluation system that includes a standard evaluation form, standard performance measures, guidelines for delivering feedback, and disciplinary procedures, performance evaluations can enforce the acceptable boundaries of performance, promote staff recognition and effective communication and motivate individuals to do their best for themselves and the practice. SET6B Human Resource Management 49

47 STAGES IN PERFORMANCE EVALUATION The primary goals of a performance evaluation system are to provide an equitable measurement of an employee s contribution to the workforce, produce accurate appraisal documentation to protect both the employee and employer, and obtain a high level of quality and quantity in the work produced. To create a performance evaluation system in your practice, follow these five steps: 1. Develop an evaluation form. 2. Identify performance measures. 3. Set guidelines for feedback. 4. Create disciplinary and termination procedures. 5. Set an evaluation schedule. SET6B Human Resource Management 50

48 METHODS OF PERFORMANCE APPRAISAL Self-Evaluation The employee is asked to judge his own performance by using a form that requires multiple choice answers, essay-type answers or a combination of the two. 360 Evaluation An employee's development consists of progress made within his own department, and the effectiveness of his interaction with the rest of the company. Graphic Scale The employee's performance in various areas of her job duties is graded on a scale. SET6B Human Resource Management 51

49 METHODS OF PERFORMANCE APPRAISAL Checklists A checklist evaluation method is simplistic but effective. It consists of a series of performance questions that are traditionally given the option of yes or no, according to online educational resource Open Learning World. Critical Incident A proactive manager keeps an ongoing log throughout the year of an employee's performance, and then uses that information to fuel discussion during the employee performance review. This method of keeping a list of good and bad incidents of employee performance is known as critical incident evaluation. SET6B Human Resource Management 52

50 360* EVALUATION Subordinate evaluations are part of a company's appraisal process where employees assess the performance of their managers. Typically, a subordinate appraisal is part of what is known as a 360-degree feedback system. SET6B Human Resource Management 53

51 BALANCE SCORE CARD SET6B Human Resource Management 54

52 ASSESSMENT CENTRES An assessment centre is an extended period of interviews, tasks and assessment exercises, organised and held by recruiters for small groups of graduate-level candidates. Recruiters use assessment centres to find out how candidates perform in various situations, in particular group situations, which are often modelled on real work-based scenarios. They are most frequently used by large graduate employers who want to hire a relatively large number of people for a similar job role, such as a graduate scheme. SET6B Human Resource Management 55

53 Typical interviews used at an assessment centre: Competency interview Partner interview Technical interview Panel Interview Typical individual assessments used at an assessment centre: Aptitude tests - verbal reasoning, diagrammatic reasoning and/or numerical reasoning Personality tests Case study Presentation E-tray exercise In-tray exercise Written exercise Professional conduct questions (mainly used by law firms) SET6B Human Resource Management 56

54 Typical group assessments used at an assessment centre: Case study Group exercise Role play SET6B Human Resource Management 57

55 PERFORMANCE MANAGEMENT SET6B Human Resource Management 58

56 UNIT V: Syllabus Compensation and Benefits Different components of Compensation Benefits Productivity and Performance related compensation Role of Compensation in retention Development and career progression SET6B Human Resource Management 59

57 COMPENSATION AND BENEFITS Compensation and benefits managers are the human resource specialists that hold the purse strings. Essentially, they are in charge of designing, developing, implementing and managing salary, bonus and benefits packages for the employees of an organisation. As well as administering the actual wages that people receive, these dynamic HR professionals manage the endowment of pensions, health insurance, annual bonuses, commission payments, company cars, cycle-to-work schemes and other lifestyle benefits. SET6B Human Resource Management 60

58 KEY COMPENSATION COMPONENTS Salary and wages. This is usually the single largest component of a compensation package, and not surprisingly, the most common point of comparison used by employees and potential employees. Bonuses. Employee bonuses, which are usually paid in a single lump at the end of the year, are one way of providing performance incentives. Long-term incentives. Stock options or stock grants not only provide long-term incentives to employees, but they can also help retain valuable team members through your organization s crucial startup phase. Health insurance. Employer-sponsored health insurance is fairly standard among medium-size companies. Plus, it s a benefit that has great value to employees. SET6B Human Resource Management 61

59 KEY COMPENSATION COMPONENTS..continued Life and/or disability insurance. This is also a benefit that usually costs less when it s purchased by an employer rather than by an individual. Retirement plans. 401(k) plans have become popular because they re relatively easy to administer and are less expensive than traditional pension plans. Time off and flexible schedules. This includes holidays, vacations, sick days, and personal days. An employer unable to offer competitive salaries may close part of the gap by offering more time off or flexible work hours. Miscellaneous compensation. Other forms of compensation to consider include employee assistance programs, which can provide everything from psychological counseling to legal assistance; discounts on company products; the use of a company cars; and any other incentives that motivate employees and give your company a competitive advantage. SET6B Human Resource Management 62

60 TYPES OF COMPENSATION SET6B Human Resource Management 63

61 COMPENSATION MANAGEMENT SET6B Human Resource Management 64

62 PERFOMANCE RELATED PAY Any system that relates the rewards of an individual employee to the performance of the organisation that he or she works for is called performance-related pay, or PRP. Such systems are designed to motivate employees and to align their effort more closely with the aims of the organisation. Payments under such schemes are usually made separately from regular salary payments. In this way the recipient appreciates that they are variable, separate and not guaranteed. SET6B Human Resource Management 65

63 ROLE OF COMPENSATION IN EMPLOYEE RETENTION Employees want to be paid well for the job they do, both for their self esteem and as a practical means to living. The importance of compensation in employee retention depends somewhat on the type of job and industry. SET6B Human Resource Management 66

64 EMPLOYEE RETENTION Employee retention refers to the number or percentage of employees your organization retains. The term retention is often used in discussions about employee turnover. The differences between retention and turnover are subtly related; however, retention is more about improving satisfaction of current employees by providing challenges, development opportunities and incentives such as retention bonuses and compensation that encourages your most talented employees to stay with the company. Turnover, on the other hand, is inevitable within any organization. Turnover occurs both involuntarily and voluntarily for a number of reasons. Attempts to reverse turnover using retention strategy that includes compensation is ill-advised, not to mention counterproductive. SET6B Human Resource Management 67

65 COMPENSATION TO RETENTION One of the most effective ways compensation can have a positive impact on employee retention is to construct an employee development plan that promises employees career track opportunities with the company. In addition, performance-based bonuses motivate employees in terms of aligning their individual goals with company goals. Implementing incentives such as stock options, profit sharing and spot rewards are other ways compensation affects retention. Appreciation is key to employee retention, and if compensation is a part of recognition, then compensation is likely to increase employee retention. SET6B Human Resource Management 68

66 CAREER DEVELOPMENT SET6B Human Resource Management 69

67 CAREER DEVELOPMENT a) Managers are concerned about employees accomplishing significant work goals-output, quality and cost consciousness. b) In this connection, it is essential to mention about Abraham Maslow's need hierarchy theory of motivation. c) Maslow says the need of highest level-self actualization need is achieved by a person only after satisfying the lower order needs such as physiological, safety, social and esteem needs. d) It is necessary on the part of the managers to satisfy all the basic needs of an employee and also the self-actualization need through better career development programs. SET6B Human Resource 70

68 CAREER DEVELOPMENT PROGRAMMES a) The organizations have to develop right type of career development programs so as to make the people grow to their full potential and to retain skilled, competent and talented employees in the organization. b) Organization structure also often causes failure in the integration of efforts of career development. The failure on the part of the personnel department to coordinate other departments of the organization to place right people in the right jobs through proper planning often causes as a barrier for the people to develop their careers. SET6B Human Resource Management 71